Buy Europe to Access Emerging Market Growth

A easing in trade tensions between the US and China is positive for European stocks, which derive a third of their sales from emerging economies

David Brenchley 12 April, 2019 | 3:30PM

Ferrari, European equities, stock market, emerging market, China GDP growth

Fears over global trade dragged markets down in 2018, but stocks have rallied in the first three monts of 2019 on hopes for an easing of trade tensions between the US and China.

The trade war dragged emerging market stocks, particularly Chinese ones, down lower than most last year, with the MSCI EM Index declining 14.5% in US dollar terms. But it also hit European stocks. The slowdown in global trade combined with country-specific issues to send MSCI Europe down almost 15%. In contrast, the broader MSCI World Index fell by just 8.7%.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
adidas AG236.50 EUR0.00
ASML Holding NV343.90 EUR0.00
Brunner Ord798.00 GBP-0.13
Cie Financiere Richemont SA62.32 CHF0.00
European Assets Ord99.00 GBP-0.40
Ferrari NV154.50 EUR0.00
Fidelity China Special Ord320.41 GBP3.69
Kering SA491.90 EUR0.00
Legg Mason IF MC Eurp Uncons A Inc £4.51 GBP-0.13
Moncler SpA34.51 EUR0.00
Schneider Electric SE97.76 EUR0.00
TB Wise Multi-Asset Growth B Acc332.80 GBP-0.32
TB Wise Multi-Asset Income B Inc91.36 GBP-0.68
TR European Growth Ord862.07 GBP-0.91

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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